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Broker survey shows high levels of car buyer confidence

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18 November 2015

Paragon Car Finance survey highlights:

  • 80% of car finance brokers identify economic certainty post-election as the key factor underpinning car buyer confidence
  • Nine out of ten brokers believe car buyers are purchasing now ahead of an interest rate rise
  • 39% of brokers expect used car values to soften in the current quarter

GREATER economic certainty following the General Election in May is the key factor behind the high levels of car buyer confidence in the UK at the moment, according to the Q3 2015 Paragon Car Finance Headlight Survey, which collects and reports the views and opinions of the country’s largest motor finance brokers.

Overall 80% of finance brokers identified greater economic certainty post-election as the top factor underpinning confidence; 60% of brokers said a stable interest rate environment was encouraging more buyers into the market, and 45% pointed to greater employment security.

Focusing on interest rates in a little more detail, nine out of ten brokers (91%) reported that the prospect of an upward movement in rates – although not imminent – is encouraging buyers to act now rather than delay purchase until later.

Reassuringly, almost all brokers are expecting a strong fourth quarter, with 91% expecting new registrations to be equal to or greater than the same period last year.

A pick-up in volumes in the used car market could also be on the cards, with four out of ten brokers (39%) expecting used car values to fall a little, potentially drawing more buyers into the market.

Julian Rance, head of Paragon Car Finance, said: “We all know how important a stable and positive economic outlook is to business and consumer confidence. What’s interesting to see here, is just how highly brokers rate the impact of greater economic certainty post-election as well as interest rate stability when it comes to encouraging car buyers into the market.”

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